Steps To Take When You Can’t Pay Off Your Monthly Minimum Balance
Occasionally we overspend. Maybe you had a financial emergency and needed to make a large purchase/ payment. While it’s never wise to spend more than you can pay monthly, it does happen, sometimes within circumstances outside our control. Here are some ways to go about dealing with the non-payment.
Talk to your Bank as Quickly as Possible
Bankers are humans too! If you have been a good customer and have a history of paying on time, you can assure them this will only happen that one time. If you can, pay any possible amount towards the balance as a gesture of good faith. This will/ may compel them to be more flexible in extending you a hand.
The worst thing to do is let your credit card bill go unpaid. This can seriously affect your credit rating for down the line, and not to mention rack up those interest charges.
Track your Weekly and Monthly Spending
Unless this was genuinely a one-off emergency situation, it’s probably best to create a budget to ensure it doesn’t happen again. Spreadsheets are a great way to track expenses and see what is due when. When you are more aware of your finances, you will want to cut spending to see more savings. Also, it lets you know to cut spending in order to be able to afford your monthly bills.
Know your Spending and Income Patterns
You may or may not have a weekly budget; but a monthly budget and schedule is a must. This lets you know what is due to whom at what point. Also, it lets you know how much you are bringing in and whether or not it will be possible to pay what is expected of you.
A card may offer you an appealing chance to buy items you desire before you earn the money, but it’s a risky practice and can get you into trouble.
By following these 3 easy steps, you’ll be able to make the best of a bad situation. Make sure not to let it happen again!